Triangle Formations (Part I)

By Ahmad Hassam

Triangle formations appear relatively common in charts. Triangles are one of the best depictions of decreasing price volatility in the currency price charts. Through triangle formations you can ride on a potentially high momentum move that is likely to occur after a period of decreasing volatility.

When a particular type of triangle has been identified by the trader, a high probability trade is in sight when the technicals are coupled with the current market sentiment. All triangles show decreasing price volatility in action.

Basically there are three types of triangle formations: 1) Ascending, 2) Descending and 3) Symmetrical. Triangles are also known as Wedges. Triangles are basically continuation patterns but they can also be reversal patterns. This depends on the different types of triangles and whether they occur in an uptrend or a downtrend.

Ascending Triangle: When you see an ascending triangle on the chart, it is basically a bullish signal. It can be either a continuation or reversal pattern. An ascending triangle can be easily identified by its upward sloping trendline. This upward sloping trendline creates the lower boundary of the ascending triangle.

The upper boundary is roughly horizontal. This horizontal line should connect at least two price points. The horizontal line represents the resistance level. What is the crowd psychology behind an ascending triangle? The crowd psychology behind the ascending triangle is this that every time the currency price goes up to the resistance level; there is sellers in the market who push the price down.

There are buyers who believe very strongly that the currency price should rise based on their own reasons when the prices retreat from their high and are on the way down. They thus bid the prices higher than the previous low forming the upward slope of the triangle.

When these two lines, one sloping and the other horizontal converge at one point the triangle is formed. The appearance of an ascending triangle should prepare you for an upside breakout from the resistance. Breakouts tend to occur in the middle or the third of the triangle formation measuring from the start of the triangle to the tip.

It is seen as an uptrend continuation pattern when you see an ascending triangle during an uptrend in general. But if it formed in during an existing downtrend, it acts as a bullish reversal pattern.

Descending Triangles: A descending triangle is viewed as a bearish formation even though it can be either a continuation or reversal pattern. A descending triangle works the opposite of an ascending triangle.

The horizontal lower boundary of the triangle represents the support level and it is formed by connecting at least two price points. A descending triangle can be identified by the downward slope of the trendline which is formed by connecting the lower price highs. This downward sloping trendline forms the upper boundary of the triangle. - 23218

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!

BlackHorse Fund: Striving For Home Runs

By Robert Miller

July 27, 2009, Los Angeles California " A successful investor is often one who has been through it all before and knows what they are doing; they bring a practiced eye to the complexities of the market. One Forex fund is delivering exactly that to its investors.

BlackHorse Fund is located in California but its investing stage is the world: As a cutting edge Forex fund, its primary aim is to grow capital for its exclusive pool of investors and it draws form a legacy of experience and an unparalleled system to achieve that aim.

Forex is the largest market in the world and it involves the trading of currency by buying one currency and selling the other. As currencies increase or decrease in value, the purchased currency may be worth more than it once was so the position is closed and a profit is realized. This market is highly liquid and necessary for world economies to function effectively.

For investors who are used to stocks and bonds, the currency market might seem less like foreign exchange and more like a foreign language! But to the practiced eye, it is a vast opportunity for wealth building. The reason that Forex investors tend to do well in this market is not because of their own experience but rather because they pooled their money with other investors and rely on an experienced trading team to do the trades on their behalf.

The team of traders and analysts who perform the research and make the trades each bring years of experience to the table. They include seasoned Forex investors a well as those who have experience in the field but bring an outsider's outside-the-box perspective. The team's skills are a balanced mix between fundamental analysis and technical analysis and the team works together, within specific parameters, to strive for successful wins.

The fund's techniques are a combination of skill, tactics, deep research, and a proprietary algorithm and all four are used by the Forex team to alert the traders and analysts to possible positions that are either investing for a new position or divesting of the their current position.

And how have BlackHorse Fund investors fared? By combining the experience of their team and the proprietary algorithm, BlackHorse Fund has delivered a substantial double-digit percentage return to investors.

This private fund is managed by BlackHorse Management LLC and is made up of these managers as well as a group of limited partners who each invest a minimum sum of money into this exclusive fund. While new investors are occasionally invited to join, membership is exclusive and based on an exhaustive process. - 23218

About the Author:

Please You can contact the BlackHorse Management group at info@blackhorsefund.com for more information, for details about the investor application process, or for media inquiries.

Warren Buffett Strategy, Investing For Long Term Ownership

By Mike Swanson

If you want to look at an extremely successful stock picks strategy, you would be remiss to overlook the Warren Buffett strategy. The philosophy he uses is known as value investment and this comes from the school of Benjamin Graham. When he invested in Berkshire Hathaway in 1965 it cost him $10,000. This investment is worth $30 million today. Had he invested this money in the S & P 500, it would be worth the considerable sum of $500,000, however half a million is nothing compared to thirty million!

This legendary investor who has his head screwed on right has become a myth in his lifetime. He is something of a bargain hunter and he pursues bargains as part of his value investment philosophy, which sees him buying stocks that other investors overlook. It is as though he can see something in under-valued stocks that other people don't see.

Value investors are able to identify securities with unjustifiably low intrinsic worth. This intrinsic worth is predicted by analyzing the fundamentals of a company and this is not seen by the majority of buyers. Warren Buffett essentially trusts that the market will eventually favor the stock he invests in.

His concern does not lie with the fact that supply and demand controls stock market intricacies and his famous quote "In the short term the market is a popularity contest; in the long term it is a weighing machine" is indicative of this.

Warren Buffett chooses stocks based on the overall potential of a company to make money as a long term prospect. Capital gain is not what he seeks and all the concerns he has are based on whether or not the company he targets is able to make money.

There are a number of questions he asks himself when evaluating the relationship between the price and the level of excellence of a stock. These include but are not limited to the return on equity in terms of performance, whether the business avoids excess debt, if the profit margins are high and are they increasing, how long it has been a public company and whether the company relies on a commodity for its products. - 23218

About the Author:

If you want to learn more about technical analysis and the stock market go to www.wallstreetwindow.com.

Buying Property in Dubai UAE

By Mohamed Whitesnow

The property market in Dubai is showing great prospects and today it would be a wise decision to get a property in Dubai. The value of property is increasing gradually in Dubai due to the high tourist footfall and Dubai becoming one of the most visited trading and holidaying destination of the world. The rental expectancies of a property in Dubai are high as well, with a steady growth, that is coming to be one of the main reasons for many to purchase properties in Dubai.

As one of the fastest maturing cities in the world Dubai has become a brilliant prospect for creating a commercial aspect in the industry of developing houses. It is among the major holidaying sites for tourists from the entire world, especially for those who feel that money is not a burden. This is the motive for the sudden growth in the industry of real estate in Dubai with key sites being chased after hotel and resort development. If you can start a business with some property in Dubai you will have the chance to harvest your money and business greatly.

Due to the huge demand in real estate in Dubai, the prices have raised tremendously with overpricing of properties becoming one of the major issues. The properties area of Dubai has not been able to come up with a solution for the problem of lapse of supply in comparison to the big demand that is there in the market. Thereupon, before you plan to buy Dubai real estate, do look for some help from professionals to understand the correct value and growth prospective of this property. Without proper professional help, you may end up buying a property with an exaggerated price and low future prospects.

The existence of an imbalance between the villas and the high-rise apartments is due to a low price difference between villas and apartments and the requirement of high resources in terms of square meeter area for the construction of villa. Thus, the villa has become one of the most sought after Dubai real estate, with high demand and low supply.

You can make a good investment by buying one of the wonderful villas at the Jumeirah Beach Residence, as it is one of the biggest projects in the world with both commercial and residential prospects. It has a project cost of around 5.87 billion UAE Dirhams, which makes it one of the best possible options for buying Dubai properties. Numerous hotels and resorts are there in this project, which will eventually increase the property value of this project.

At present, the income from rent is nearly 4 to 10% of the value of the property in Dubai. Therefore, you can clearly say that the real estate sector of Dubai has huge prospects you can easily invest in the high-rise apartments with proper guidance from the local investment groups and reputed realtors that are available in Dubai. You can also conduct your own market research about the properties pricing through the Internet and thus bring out on your choice of apartment.

You can easily afford an apartment in a Dubai sky-scraper and it is great investment in the property area of Dubai. If you are able to utilize properly this property then you will find that it is quite profitable. The rental incomes from the high-rise apartments are quite high and you will be making huge profits from your investment. To understand the value and prospects of type of property you must consult professionals, preferably real estate lawyers and reputed agents to find out the possible benefits and profits that you are going to get form this real estate property in Dubai.

Make sure that the neighbourhood in which you are buying your property has growth potential. The value will surely rise for a building or apartment if it is near a shopping mall, hotel or resort. The real estate sector of Dubai is a wise option now for investment. Even if you are buying the property with the help of a loan, the rent that you are going to receive for your properties in Dubai will pay for it quite conveniently, and before you know it, you will be making a huge profit from your property.

A final note on how the global financial depression influenced the cost of Dubai real estate. As most of you have expected the prices have dropped dramatically. So the end of the fourth quarter of 2009 can be a good time for purchasing property in Dubai with a decent price. - 23218

About the Author:

Before you spend money on Dubai real estate it is a good idea to research some classified adverts of property for sale in Dubai updated every day. Mr Muhamed Whitesnow is an enterprenuer activating in the market of Dubai property. Keep in mind that Dubai is a great place for buying property if you do it the right way.

Symmetrical Triangles -Short CFD Trading Strategy

By Jeff Cartridge

The symmetrical triangle can be traded on the short side entering the trade as the stock breaks out of the pattern to the downside. The pattern forms when the two boundary lines that contain the price movement converge to a point. The bottom line slopes up toward the top line which slopes down. Both lines have nearly the same slope as each other which is why the pattern is called symmetrical.

Symmetrical Triangles, Not Usually Traded Short

The symmetrical triangle can be traded both long and short and when it does break down, historically 45% of the time, it can be profitable. A symmetrical triangle breakout to the downside is not as reliable as a breakout to the upside with only 44% of the trades being profitable. The average profits are just 0.33% in 9 days.

Specific Setups to Improve Profitability

When you look at the performance of a symmetrical triangle in bearish market conditions you will see the results were stronger than they were in more bullish years. The market, sector and stock should be in a down trend or consolidating to make the best profits.

A breakout from a symmetrical triangle is best if it occurs later in the pattern, but not near the start. The best trades occur when a down side break occurs after the stock bounces off the lower boundary and drops back before hitting the upper boundary.

Ensure that the volume is supportive of the breakout, i.e. volume as the stock falls is greater than volume as the stock rises. One last filter that improves the results is to look for the share to close lower prior to the breakout.

Short Trading Symmetrical Triangles Can Be Profitable

Following a series of simple rules to determine which symmetrical triangle to trade can improve results dramatically. By applying these filters symmetrical triangles are profitable on 47% of the trades and return an average of 1.58% per trade in 9 days. This is a profitable pattern to trade.

Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23218

About the Author:

Jeff Cartridge is the author of Supercharge Your Trading with CFDs and created the website LearnCFDs.com Ways to Make Serious Money With A Small Investment